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Answer Upon - Strategic Acquisition Strategies for Small Businesses
Perhaps you have a book out, or a wonderful service that helps people make their lives better. Authors/publishers are great at getting their books written. Entrepreneurs know their products. But after the initial one-year honeymoon, sales slow down.To counter this make sure your ebook, product, or service you offer will keep on selling from the first day, the first year, even for life. Write a short sales letter for each product or ebook.Whether you have a Web site or not, you can write a first class, must-buy-now sales letter. Write one for each teleclass, eBook, product, or service. I even write one for my bookcoaching services.If you are like me and have a Web site, it is content driven. Why? Because that's why people come to any site--to get free information. You must also give them a reason to buy. Most home pages say too much about the author or the book instead of intriguing their potential buyers with a benefit- driven headline, which in turns leads them to the benefits of their books--the sales letter.My first Web site had many fine books and kits in personal growth and book writing and marketing. Sales never went over $200 a month. To correct that, I created a new site and paid special attention to its sales language (without hype) for each teleclass, eBook, and book coaching opportunities to suit each income and need. Sales were $75 the first month, and in four months they reached $2265. One year later, and today, over $4000 a month. You can boost your sales too.What Every Sales Letter Needs to Pull Orders and ProfitsYou can write each sales letter in less than four hours the first time. As you practice, you ca
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E
Here are my 7 tips for polishing your presentations and giving maximum value to your audience:1. Involve the audience by asking them questions and for their own stories and experiences to support what you are saying. However, only ask a question if you know they will get the answer right! You are not there to test them and a series of wrong answers will take you off-track and begin to irritate.2. Talk for about 15 minutes at most without audience participation, or you will lose their attention. People always start to perk up if they think they may be asked for a contribution!3. Use plenty of anecdotes and human interest to engage your audience’s imagination. Human beings love stories and they will be more inspired to think about what you are saying.4. Don’t be afraid to repeat important points several times or to allow a pause for something vital to sink in. Even the most quick-witted amongst us welcomes the opportunity to mentally catch up and really appreciate a point before you move on.5. Use plenty of visuals, whether that be Powerpoint, props or visual imagery. Being able to see or imagine something brings it alive in a fresh and powerful way.6. You will probably need to speak more slowly, more clearly and more loudly than you would naturally. A normal conversational pace can come across as a gabble in a presentation.7. And most importantly of all – look as though you are enjoying yourself! Moods and emotions are catching, and if you look as though you are happy to be there, talking to them, your audience will be more responsive.Enjoy putting these tips into practice and you will become a popular presenter!
Timing is Right - Two elements have combined making growth through acquisition an attractive option for small and middle market companies.
Demographics - The maturing of the Baby Boom generation, many of whom own their own businesses, will increase the number of owners willing to consider selling to an historic high.
Financing - Money is available to finance small and middle market acquisitions. Banks and non-traditional lenders are aggressively pursuing acquisition lending at a level we have not seen in twenty years. Cash required to do a deal is at an all time low.
Profit Pays the Bills Profit and Value are two main financial components of every business. Profits are essential and therefore on every businessperson's front burner. Value, on the other hand, is an elusive and intangible issue. Unlike Public company presidents, whose effectiveness is measured daily in their firm's share price, private and family business presidents need not be concerned with their company's value as their shareholders, if any, typically focus upon profit only.
Value Measures the Size of Your Pile
Shareholders of Public Companies measure their wealth (or the size of their pile) using share value not earnings per share. Successful CEOs, therefore, develop strategic plans for growth and profit that maximize shareholder's value. Mergers and Acquisitions is a fundamental element of most strategic plans to grow profits and value simultaneously. What follows is an overview of Public Company strategies to grow profits and value through acquisitions and how to adapt these strategies to private and family businesses. Although the topic may seem technical and complex it is really quite basic and straightforward.
An Overview Adding earnings or profits is self-explanatory. We will, therefore, focus primarily on the value component of growth through acquisitions.
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E
Professional speaking is one of the easiest ways to enhance your career. Opportunities abound; no matter how experienced or inexperienced. The more you speak the better you will become. You will establish a reputation as someone knowledgeable in your field and people will contact you for speaking opportunities as a result.Everyone has to start somewhere. Here are 10 ways learning to be a speaker can enhance your career.1. When you speak you automatically assume the role of an expert. People are coming to hear what you say, right? That routinely positions you in the role of an expert. The more credentials you add to your "expert" status the more valuable you become.2. Speakers get high profile visibility. Look to get your name included in programs, brochures, email announcements, agendas and other handouts, press announcements and online posting of conference materials. This is especially important when you are starting out and are not being paid. Ask up front what type of PR they will be doing for the event. NOTE: Pay attention to important submission deadlines.3. As a speaker, you get to meet other colleagues and associates. It?s a place where you can chat up your competition without any repercussions. Look to see who's on the agenda and make sure to meet as many other speakers as you can. Ask them to keep you in mind at other events where they might be speaking.4. Speaking can open doors to people you want to meet. It?s easy to pick up the phone and ask someone to come to your event or send them an email invitation. Even if they can't attend it will position you as someone of note. It?s also a great way to follow up with a copy of your name in
Financing - Money is available to finance small and middle market acquisitions. Banks and non-traditional lenders are aggressively pursuing acquisition lending at a level we have not seen in twenty years. Cash required to do a deal is at an all time low.
Profit Pays the Bills Profit and Value are two main financial components of every business. Profits are essential and therefore on every businessperson's front burner. Value, on the other hand, is an elusive and intangible issue. Unlike Public company presidents, whose effectiveness is measured daily in their firm's share price, private and family business presidents need not be concerned with their company's value as their shareholders, if any, typically focus upon profit only.
Value Measures the Size of Your Pile
Shareholders of Public Companies measure their wealth (or the size of their pile) using share value not earnings per share. Successful CEOs, therefore, develop strategic plans for growth and profit that maximize shareholder's value. Mergers and Acquisitions is a fundamental element of most strategic plans to grow profits and value simultaneously. What follows is an overview of Public Company strategies to grow profits and value through acquisitions and how to adapt these strategies to private and family businesses. Although the topic may seem technical and complex it is really quite basic and straightforward.
An Overview Adding earnings or profits is self-explanatory. We will, therefore, focus primarily on the value component of growth through acquisitions.
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E
What is invoice factoring?Accounts receivable financing, also known as invoice factoring, is a powerful financial tool that has fueled the growth and success of a number of companies. Factoring enables companies to capitalize on their unpaid receivables by selling them to a factoring company for immediate payment. With factoring, companies immediately get paid for their invoiced work from the factoring finance company, while the factoring company waits to be paid by the customers. Factoring strengthens a business’ cash position by shortening the time to get invoices paid to 48 hours and providing the needed funds to meet current expenses and target new opportunities.Invoice Factoring BenefitsAs opposed to loans and lines of credit that require that the client have tangible assets and strong financials, factoring relies more heavily on the financial strength of the clients’ customer. This is a critical feature, since many new and small businesses do not meet the financial criteria of traditional lending institutions. However, many small businesses have a roster of financially strong customers that can be leveraged. Factoring empowers businesses to capitalize on their customer list, and provides them with a tool to transform outstanding receivables into immediate cash, without generating debt. Since Factoring is not a loan, it is an ideal financial product for the following:o New and emerging businesses including small and home businesses, consultants and solo-preneurs.o Businesses with financially strong customerso Businesses that are preparing to grow significantlyo Business with intangible assets (e.g. consultants)ue, on the other hand, is an elusive and intangible issue. Unlike Public company presidents, whose effectiveness is measured daily in their firm's share price, private and family business presidents need not be concerned with their company's value as their shareholders, if any, typically focus upon profit only.
Value Measures the Size of Your Pile
Shareholders of Public Companies measure their wealth (or the size of their pile) using share value not earnings per share. Successful CEOs, therefore, develop strategic plans for growth and profit that maximize shareholder's value. Mergers and Acquisitions is a fundamental element of most strategic plans to grow profits and value simultaneously. What follows is an overview of Public Company strategies to grow profits and value through acquisitions and how to adapt these strategies to private and family businesses. Although the topic may seem technical and complex it is really quite basic and straightforward.
An Overview Adding earnings or profits is self-explanatory. We will, therefore, focus primarily on the value component of growth through acquisitions.
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E
At this moment, thousands of aspiring entrepreneurs are wrestling with one big question -- "Should I start my own business from scratch or buy a franchise from an established company?" To tackle this issue, it might be good to start with some cold, hard facts. Statistics published by the US Department of Commerce indicate that the risk of business failure is dramatically high among do-it-yourself business owners. While 80% to 90% of start-up businesses fail in the first few years, only 10% of franchise businesses fail. A 90% success rate for franchised businesses might seem impressive, but the success rate can climb even higher in niche franchise categories, such as specialty foods and drinks.The Irish Pub Company, a supplier of authentic building materials for Irish pubs and related construction consulting services in the United States, reports that 99% of their 250 pubs developed since 1997 are still in business. Compare this 99% success ratio to the meager 20% success rate of all food and beverage ventures in their first year, and you can see why we chose a pub-style concept for our current franchise system. The customer base in pubs is more loyal because of the home-like atmosphere, and the higher beverage-to-food sales mix strengthens the bottom line in this type of concept. This is another way to further leverage the power of franchising to improve your odds of success.These numbers have not gone unrecognized. Savvy business owners have taken notice of the franchise industry's impressive track record. As of 2001, there were more than 750,000 franchise businesses in the United States, providing nearly 10 million jobs to the US economy and generating $229 billio
An Overview Adding earnings or profits is self-explanatory. We will, therefore, focus primarily on the value component of growth through acquisitions.
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E
Questions asked on employment agency word processing testsWhat kinds of questions are asked on employment agency tests for Microsoft Word, PowerPoint and Excel? Well, from my 14 years experience of being a legal secretary/word processor in New York I have seen a wide variety of tests ranging from extremely easy to pull-your-own-hair out hard, even if you are bald! But seriously, there are two kinds of tests.Most given are automated computerized tests which are among the easiest. They ask basic questions for example, on a Microsoft Word test how to bold, or add a row to a table with usually the hardest question being how to merge. These are usually the tests that asks if you want to restart a question or skip to the next one.On harder tests, usually a custom test you are usually asked to create styles from stock Microsoft Word, how to work with section breaks, create a table of contents or an index or create a table with different types of tabs. I've even seen tests where they ask you to create a red herring which is text that is going at a 90 degree angle to the regular text on a page. It is usually put inside of a Microsoft text box.If you want more information and advice on taking word processing tests plus other information like rates of pay, registering at employment agencies, typing speed, 2 important books all word processors should have plus other important information on the word processing/legal secretarial market visit http://www.technorb.com or http://www.legalsecretaryinfo.com!Sincerely,
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E ratio than yours
Example: The Transaction -- Company BIG with a P/E Ratio of 15 acquires company SMALLER and pays 10 times earnings (P/E ratio = 10). Company SMALLER's 10 million dollar of earnings are added to those of company BIG. Increases in Value Calculation -- SMALLER's earnings are now worth 15X instead of 10 times earnings resulting in an immediate increase in value of 5X earnings or $50,000,000 (5 times $10,000,000) over and above the value paid by company BIG.
Strategy #2 - Reduce expenses through economies of scale
The picture gets even better if eliminating duplications and other economies of scale will reduce company SMALLER's expenses. Every dollar reduction in expenses translates into $15 of value (P/E Ratio of 15 X $1). Increases in Value Calculation -- Company BIG is able to eliminate 1 million dollars of redundant expense - $1,000,000 X 15 = $15 million dollar increase in value.
Strategy #3 - Acquire according to a strategic plan
BIGs acquisition of a company in order to gain specific benefits such as: proprietary products, technology, channels of distribution or talent base for example, can result in an improved outlook for company BIG. Whereas the P/E ratio usually reflects expectations of future profits, a strategic acquisition often produces a P/E ratio increase. In this example company BIG's P/E ratio increases by a dollar from 15X to 16 times earnings after the acquisition was announced.
Increases in Value Calculation -- Every point increase in company BIG's P/E ratio equates to 111 million dollars of added value (original $100 million in earnings plus addition of SMALLER's $10 million plus $1 million in reduced expenses times 1).
Calculation of Increased Value to Shareholders: In the above example, company BIG's acquisition of company SMALLER not only has increased earnings by $10 million but has increase company BIG's value as follows.
Increased value of $10 million in earnings $ 50,000,000
Reduced SMALLER's expenses by $1 million 15,000,000
Increase of BIG's P/E Ratio from 15 to 16 111,00
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